Asset Impairment, Exit and Implmentation Costs

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Asset Impairment, Exit and Implementation Costs

Asset Impairment, Exit and Implementation Costs:

Pre-tax asset impairment, exit and implementation costs consisted of the following:



	For the Three Months Ended March 31, 2019								For the Three Months Ended March 31, 2018
	Asset Impairment and Exit Costs			Implementation Costs ⁽¹⁾		Total			Asset Impairment and Exit Costs		Implementation Costs ⁽²⁾		Total
	(in millions)
Smokeable products	$	36		$	8	$	44		$	—	$	1	$	1
Smokeless products	8			1		9			2		—		2
All other	(5		)	—		(5		)	—		—		—
General corporate	1			—		1			—		—		—
Total	40			9		49			2		1		3
Plus amounts included in net periodic benefit income, excluding service cost ⁽³⁾	12			—		12			—		—		—
Total	$	52		$	9	$	61		$	2	$	1	$	3

⁽¹⁾ Included in marketing, administration and research costs in Altria’s condensed consolidated statement of earnings.

⁽²⁾ Included in cost of sales in Altria’s condensed consolidated statements of earnings.

⁽³⁾ Represents curtailment costs. See Note 6. Benefit Plans.

The 2019 pre-tax asset impairment, exit and implementation costs are related to the cost reduction program discussed below.

The movement in the restructuring liabilities, substantially all of which are severance liabilities, was as follows:



	For the Three Months Ended March 31, 2019
	(in millions)
Balances at December 31, 2018	$	155
Charges	40
Cash spent	(35		)
Balances at March 31, 2019	$	160

Cost Reduction Program

In December 2018, Altria announced a cost reduction program that includes, among other things, reducing third-party spending and workforce reductions across the businesses. As a result of the cost reduction program, Altria expects to record total pre-tax restructuring charges of approximately $210 million. Of this amount, Altria incurred pre-tax charges of $121 million in 2018 and expects to record the remainder in 2019. The total estimated charges, substantially all of which will result in cash expenditures, relate primarily to employee separation costs of approximately $180 million and other costs of approximately $30 million. Total pre-tax charges incurred since the inception of this cost reduction program were $182 million. Cash payments related to this cost reduction program of $22 million were made during the three months ended March 31, 2019. There were no cash payments related to this program in 2018.